<p>My financial aid package included 3 student loans(Perkins, Staffords) totaling 7,500 and a parent loan for 5,700. Would this be too much for 1 year? If we're paying $100 a month for 10 years for each just for this year, I think it would be overwhelming in the long run.</p>
<p>I'm counting on tuition lowering with change of residency in a year but I just want an opinion of a more realistic situation. I've never been in debt and I'm cringing at all of this but on the other hand there are those with crazy debts who are going forward and I don't want to be left out of a chance for a higher education.</p>
<p>Will you be responsible for paying the Plus loans?</p>
<p>*If we’re paying $100 a month for 10 years for each just for this year, *</p>
<p>If you borrow $5700 for this year, your payments will be about $90 per month for 10 years. BUT…If YOU are responsible for the Plus Loans, too, you will be responsible for about $180 per month for 10 years (Plus loan are at a higher rate…8.5%.)</p>
<p>Are you sure you’ll get instate rates next year?</p>
<p>What is your major? What is your likely career?</p>
<p>How much do you think you’ll be earning when you graduate?</p>
<p>No, I would be responsible for my $100 for my student loans + interest payments. I do think about the scenario if a payment can’t be made for the parent loan, I would have to come up with it.
I’ve checked with loan calculators for each loan. I would pay a little more than minimum to keep the interest lower and pay off the loans sooner.</p>
<p>I’m fairly positive. I would have a year of residency, possibly a job from said state and my mother’s ID has been from said state for many years now.</p>
<p>Illustration would be my major. A good reason for selecting it is because it can cross job lines from book cover art, children books, game art, commercials, packaging,etc. The median salary varies from $35,504 - $45,465 depending on area for someone just coming out of college with a Bachelor’s. These figures might change in the next years and statistics don’t hold much weight so that might be a problem.</p>
<p>By the way, you might want to double check the in state residency policy of this school. In state residency isn’t something that is always clear cut.</p>
<p>My answer is a more general one. Are you willing to work hard and live without some luxuries? One hundred dollars a month doesn’t sound like that much to me and if you work at it you could pay your portion off sooner and help you parents with theirs if you want to.</p>
<p>I have come to believe that how much money you make isn’t as important as whether you know how to live within your means. There is no level of income that can’t be outspent.</p>
<p>The debt load you are proposing sounds manageable and getting a college degree is a good reason to take on debt.</p>
<p>I’ve checked out their forms but I’ll also be asking them about it to clear things up.</p>
<p>I’m very minimalistic so that wouldn’t be a problem. Thing is that my situation is a bit delicate and those monthly payments wouldn’t be an overall burden but it would be a bit of a struggle sometimes at the moment. I’m hoping since the school is in a good area, my chances for a job would be higher though so I can pay off the loans even quicker.</p>
<p>I get that point of view but there are always the ‘what if’ situations that make me hesitant to just go for it. </p>
<p>Thanks for the help everyone. Anyone else have some advice or know-how?</p>
<p>There are not many kids just out of college being hired to illustrate book covers. Have you checked the actual jobs recent illustration majors have gotten? It also seems like your payments will be much higher than $100/mo when you finish college. Please be very careful, this is a lot to borrow if your parent’s are not financially solid and can’t help.</p>
<p>Are you planning to pay the interest on your unsubsidized loans every month while you are in college? If you aren’t, then please consider it if it is at all possible. The reason why I suggest if you can just keep the interest from being added to the principal it can really cut down on the cost of the loan.</p>
<p>Oh, I know there aren’t any spectacular jobs straight out of college. I do have experience in freelancing.</p>
<p>I’d like to be able to go to college without parent’s help financially but that doesn’t seem to be in the cards. I don’t want to be a burden which is mostly why I’m considering canceling. Everyone’s telling me to go and they’ll figure out how to pay it but I’m not sure.</p>
<p>I am considering making the interest payments, it really cuts down on the total. I can’t believe they add on so much!</p>
<p>If your Staffords & Perkins loans are subsidized, then there is no interest until the loans come due after you graduate – so no need to make any payments towards interest.</p>
<p>Its an accounting trick. Basically, what they do is they add the interest htat you dont pay onto the loan as if you had borrowed the full amount of loan + interest and they calculate interest based on THAT! so lets say you borrow 2000 dollars and the interest on that monthly is 6.8% (roughly $11); if you don’t pay the interest the loan becomes worth $2011 and the itnerest on THAT will be calculated and charged and if you keep being delinquent they will raise it over and over. I cannot stress enough how smart it is to pay your loan interest at least while you are in school; it can be tghe diffefrence between manageable and painful debt loads!!!</p>
Anyone else have some advice or know-how?</p>